broad and the uses for which land cannot be expropriated are not speecifi.ed.

In acquiring latads for grants, INCORA will first try to uLili-se ,. ; ..

lands that are easily/ accessible to the rural population of the respective

region if such lanis offer the necessary conditions .::,;: colsnatioen

(Article 55). If NCOBA finds it necessary to acquire privately owned

lands, it must follow the following rules (Article 57):

1. Priority shall be given to those zones where land congestion iF

notable or where total or partial unemployment exists among a large part

of the'farm population, and to those other areas where active erosion exists,

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where work relations are unjust, or visibly low at-La.. of living of the

rural population occur in xLation to other parts of the country

2o It shall only acquire lands that are adequate for cropping or live-

stock production or a small scale Those lands are considered as such t.:;-

are irrigable or if unirrigable, where the rainfall is ordinarily sufficient

to produce crops ani grass which provide a basis for sustaining the econ o.e

use of "family farm units" with regularity.

Within potent~ l irrigation districts, it is understood that priority

shall be given to acquisition of lands in thep project area that are subject

to extinction of do iinium (Article 68)o

If it appears :ieessary to acquire privately owned lands, the prc-ej. ar

used will be according to the following order of priority (Article 55)

1. Un ltivat id lands which do not fall under the rules for extinction

of private dominium.,

2, Lands inadequately used

3. Adequately used properties which are exploited in total or in large

part by renters or :hareoroppers but on which the owner exercises no manage-

ment nor abares in cost of operation, or land, even though it i.g :-'1 o'. .

that belongs to a foreign corporation (Article 66)0

4, Adequately used lands not falling under 3, above, the proprietors of

which are disposed to sell them voluntarily.

Presumably their although it is not specified, the lowest priority would

be adequately used private lands which the owner does not want to sell

A summary of ti.e above articles provides an indication of a lend owner s"

protection under present lawo As INORA will acquire only lands suited to

crop or livestock enterprises on "family farm units, and a s their first

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priorities are unused or under-used lands, or adequately used lends in which

the owner has no act '.v- interest, the owner of adequately used lands in 'which

he provides management and/or a share of the expenses, has reasonable

assurance that INCOR will. not expr poriate said pertyo This, of course,

excludes uses for which lands can normally be condemned such as for canal ,

roads, etc.

An important omission from the legislation above is protection for an

owner who 1) is just beginning to develop his holdings, or 2) has just

pux~chased unutilized or under-utilized areas with the intention of develop-

ing ito In either c sa, there is noaasurance that IN3OOA 4ill not expropriate

some or all of the land after initial investments have been made but before

the owner has the protection aibrded to owners of adequately exploited linds..

In this regard, with respect to obtaining grants of public lands,

individuals or associations can make a contract with the Institute (Artioles

32 and 33) which offers protection during the period of development providing

that certain develop ent objectives, as set forth in the contract, are meto.

The proposed modifications to the present Agrarian Reform laws introduce

a new article (Article 30 of Law 100) which would permit the Institute to write

contracts with ownei s of private lands to protect them during the pei..: c.f

development.J1 Althcug-h 1) the terms of the contract are quite strict, 2) the

scope is somewhat limited with respect to kinds of enterprises that qualify, end

I/ Article 30: Intrdtuces the following new article:
Article 110 Biso W:ith the approval of the national government in each ease,
INOORA can contract with owners and managers of crops and livestock operations
for the purpose of dancing prorm of id' i increasing the production of thoae

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3) the operational problems could well prove to be completely unmanageable,

this article would Ir rcvid protection to land owners that under present law

do not have ito

(Footnote continued from previous page)

agricultural commod&.ties which the government indicates are necessities of
domestic consumption; or exportation, considering such factors as climate,
'opography, soils, At.to, for the time necessary for the dovelcpment of the
programs according ;o the nature of the exploitation, and the amortization
of the investments So long as the contract is executed as agreed at the
time of its approval the lands that are involved oaniot be appropriated
by the institute '..h( control of the contracts is in the hands of l~:J_..-
If the terms of the contract are not met, then the contract is nullified, the
established guaranty ,ea will be paid, and the land will be included in those
agrarian reform projects which are taking place in the respective areas.
The same sanctions rpply when the competent authorities have proved that
the owner has failed .1o comply with the labor regulations concerning his
rural workers

The Institute will preferably use the system of contracts, as prescribed
in this article, for: increasing investments in the livestock inditr;y,
in those sones where the climate, the nature of the soils, and the low
density of population are especially favorable for this type of development

;i appears that present and propc.:ed legislation p.ovdLe- reasonable

.,...:.5.lvy: .-:-cur-ity te owners of lands which are either (1) in productive